No business can grow without the trust of its customers. Bonds help guarantee your business and its employees will operate with integrity and in compliance with the laws and guidelines by which agree to conduct business. When a business is bonded, it can provide clients with peace of mind.
When you post a surety bond, you are essentially securing a form of credit that assures your business is good for what it says. Under a surety bond, the insurance company will review the nature of your company’s business and assets. The bond acts as a cross between an insurance product and a line of credit that guarantees your payment in the event you are liable for a claim. Under the terms of a bond, your business agrees to pay 100 percent of all claims and associated fees. Since the bond issuer is ultimately responsible for the value of the bond, the insurer may liquidate your corporate and personal assets to satisfy the agreement if you are default on claims.
In Wisconsin, bonds come in all types and sizes. From sole-proprietorships looking to maintain compliance with local and state laws to contractors hoping to win a bid on a new job, we help our customers secure surety bond products that fit their individual needs. Examples include:
Bid, Performance and Payment Bonds
These bonds guarantee the obligee that a particular business or contractor will deliver upon the performance guaranteed in the contract. It may also guarantee that a particular project will be completed within a reasonable amount of time. If required, a payment bond also guarantees that all workers, vendors and subcontractors associated with a particular project will be paid accordingly.
Public Official Bonds
When you work as a public official – whether elected or appointed – you are guaranteeing that you will uphold the duties and requirements of office according to the statutes that legally define it. A bond is issued based on the reputation and experience of the official, including any past litigation or mistakes. Examples of public offices that may require bonds include public notaries, judges, tax collectors and treasurers.
Other Surety Bonds
There are many other unique circumstances in which a bond may be required to guarantee the integrity of a business or individual. For example, you may need a surety bond if you are named the guardian, trustee, conservator or executor of an estate, trust or other entity held in the name of a minor, a deceased individual, or a person who is otherwise deemed incapable of managing the entity in a responsible manner.
Fidelity bonds are issued on behalf of your workers, guaranteeing their integrity on the job. Despite your best efforts to maintain honesty in the workplace, fraud can occur – often when you least expect it. A fidelity bond helps protect your money and assets if they are threatened by employee theft and dishonesty occurring on your business property or on the premises of one of your customers. For example, a fidelity bond could help protect your maid service business if one of your employees steals jewelry from a client.
Getting Bonded in Wisconsin
If your business needs to be bonded, it is important that you work closely with an independent insurance agent to assure that you find an insurer who understands the nature of your business and your ability to return on your promises. For more information about Wisconsin surety and fidelity bonds, contact our office. We look forward to speaking with you soon.